Medicare and Social Security Fair Share Act

This bill would raise money for Social Security and Medicare by having high‑income people pay more on wages, self‑employment, and investment income. It also sends part of that money straight to the Social Security and Medicare trust funds .

• Who is affected: People with incomes above $400,000 (or $500,000 for couples filing jointly), and trusts and estates. This includes high earners from wages, self‑employment, and those with large investment income .

• What changes: Social Security payroll taxes would also apply to wages above the normal earnings base, up to $400,000. Very high earners would pay an extra 1.2% on wages above $400,000 ($500,000 for joint filers), and a similar 1.2% on self‑employment income above those levels, coordinated so you don’t pay the extra amount twice on the same dollars . People over the high‑income threshold would also pay a new 13.6% tax on certain investment and business income; for trusts and estates, the investment‑income tax rate would be 17.4% . The rules avoid double‑taxing wages and self‑employment income and bring in some foreign investment income. Some of these tax dollars are directed to the Social Security and Medicare trust funds.

• When: The wage and self‑employment changes would start on January 1 of the first year after this becomes law . The investment‑income changes and the trust‑fund transfers would start with tax years that begin after December 31, 2025.